Oil steadies after biggest monthly advance since early 2022

Oil steadies after biggest monthly advance since early 2022

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Oil steadied after the biggest monthly advance since early 2022 as signs of a tighter global crude market were countered by indications the rally may be due for a pause after such a rapid run-up.

West Texas Intermediate was little changed below $82 a barrel after surging 16 per cent in July.

The gains, which lifted prices to a three-month high, have been underpinned by signals demand is running ahead of supply after OPEC+ reduced output.

In addition, with US inflation cooling, there’s speculation the world’s biggest economy can avoid recession.

Still, crude’s climb means that its 15-day relative-strength index has risen to near 70, a level that suggests the market may be overbought in the near term and could face a downward correction.

Oil exchange-traded funds just posted their largest week of outflows for more than a year.

Crude’s turnaround has been accompanied by a raft of banks including Goldman Sachs Group suggesting the market now faces a deficit after prices fell in the first half due to a supply glut.

The OPEC+ Joint Ministerial Monitoring Committee is due to hold an online review of the market on Friday to gauge the impact of the reductions that have been led by Saudi